DECA+ Business Management and Administration Practice Exam

Which strategy would likely involve a company significantly increasing its advertising budget seasonally?

1. Bundling

2. Lockout

3. Flighting Strategy

4. Churning

The correct answer is: Flighting Strategy

The flighting strategy is a marketing approach characterized by alternating periods of heavy advertising and no advertising. Companies that use this strategy often increase their advertising budget during peak seasons or certain times of the year when consumer demand is higher, and then significantly reduce or eliminate their spending during off-peak times. This method allows companies to maximize their advertising dollars by focusing their efforts when consumer attention is most likely to be captured, thereby increasing impact and effectiveness. In contrast, bundling refers to the practice of selling multiple products together at a reduced price, which does not inherently involve seasonal changes in advertising focus. Lockout generally pertains to competition and market dominance, where one company secures a resource or market segment against competitors, rather than a seasonal advertising budget. Churning typically relates to the loss of customers or clients, focusing on customer retention rather than advertising expenditure. Hence, flighting is the most suitable strategy for a company looking to significantly adjust its advertising budget seasonally.